08 October 2014
A company was using a building owned by it for its business purpose but now it wants to let it out (not for the purpose of business). How this should be treated in books of accounts as well as in block of assets concept?
09 October 2014
in books of accounts, it wont make any difference. in taxation, the depreciation wont be allowed here on as the income from rent will be taxed as Income from house property
09 October 2014
But sir how should it be taken out of the books, I mean I don't want to show it as a business asset. Should I show it as a sale or something else... pls suggest.
09 October 2014
Okay but as per Income Tax Act company would not be allowed to claim depreciation on that bldg, still it would form part of company's assets ?(as per IT Act?)
CAclubindia
